The 180-day risk-free interest rates in the us and britain


Question - The spot exchange rate for British pounds is 1.3025 (USD/GBP where the first-named currency-USD- is the unit currency) The 180-day risk-free interest rates in the US and Britain are 3% and 2.75% respectively. What is the forward exchange rate in GBP/USD?
Choose one answer.

A. 1.3025

B. 1.2993

C. 1.3057

D. None of the above

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Accounting Basics: The 180-day risk-free interest rates in the us and britain
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